Which of the following is a valuable investigation tool for analysis of the collectibility of a firm's receivables?
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A. B. C. D. E.A
Each of the above mentioned tools are valuable in assessing the collectibility of a firm's accounts receivables. An aging schedule will pinpoint which customers are not paying within terms. An analyst should investigate if a firm is understating allowances for discounts, returns and allowances, as this would overstate receivables. If too much of a firm's sales are made to one or more firm's that are experiencing financial distress, receivables are at risk.